If you are a limited company, an overseas company with a UK branch or an unincorporated association, then you are liable to pay corporation tax.

Corporation tax is a tax paid on the adjusted profits generated from your business, including trading profits and profits made from investments and the disposal of assets.

When it comes to corporation tax, specific rules apply to businesses with an overseas presence. While UK-based companies are required to pay the tax on all profits (UK and abroad), a company that is based overseas with an office or branch in the UK pays corporation tax on profits gained from its UK activities.

It’s also important to note that no bill is provided for corporation tax – instead, you are required to calculate how much you owe and pay your charge accordingly. This is done by maintaining accurate accounting records and preparing a company tax return. If the calculation shows that you have nothing to pay, you must still file your company tax return.

Over the past seven years, Smith Cooper have been key to helping build the success of my business.

John Oldfield, Beechdale Motor Group

The deadline for paying corporation tax and filing a company tax return depends on your accounting period, which is usually the same as your financial year. Once you have registered for corporation tax, HMRC will send the details of your accounting period. The deadline to pay is typically nine months and one day following the end of your accounting period, and it is imperative that the tax is paid on time before interest charges are incurred.

Here at Smith Cooper, we recognise that all businesses are different. Our multifaceted team of experts have the technical expertise and specialist know-how that is required to provide bespoke advice and support to a range of companies when it comes to their corporate tax position.